Fractionator V will include NGL product infrastructure and a 3-million-barrel Y-grade storage cavern. The facility will cost about $385 million to construct, the company says. The 120,000-barrel-per-day (bpd) fractionator is scheduled for long-term, fixed-fee contracts and will go online by September 2018, according to Lone Star.

Lone Star plans to construct Fractionator V as a result of production growth in the Delaware and Permian basins. Upon completion, Lone Star will own and operate more than 540,000 bpd of fractionating capacity at Mont Belvieu, the company says.

With the addition of the Lone Star Express Pipeline, which was placed in service in August 2016, Lone Star has about 585,000 bpd of NGL transport capacity out of west Texas and southeast New Mexico, along with 880,000 bpd total capacity out of Mont Belvieu. As Permian Basin production continues to increase, the company is positioned to continue expanding its pipeline and fractionation capacity, according to Lone Star.